Equilibrium is the point at which quantity demanded and quantity supplied are equal.
Disequilibrium is any price or quantity not at equilibrium, this is when a quantity is Supplied is not equal to quantity demanded is more than the quantity supplied.
Excess demand is when quantity demanded is more then the quantity supplied.
Excess supply is when quantity supplied is more than quantity demanded
Price ceiling a maximum price that can be legally charged for a good or services
Price floor is a minimum price for a good or service.
Rent control is a price ceiling placed on rent.
Minimum wage is a minimum price that an employer can pay a worker for an hour of labor.
The market would be in equilibrium and people would be able to afford more spots.
A price ceiling is a maximum price, set by law, that sellers can charge for a good or service.
The equilibrium price and quantity can be found where quantity supplied equals quantity demanded, or the point where the supply curve crosses the demand curve.
#1-3 pg.131
1. Equilibrium is unique because it is the point at which quantity demanded and quantity supplied are equal.
2. A situation that can lead to excess demand is, when quantity demanded is more then the quantity supplied.
3. Price floor is the minimum that the government can in-force to make someone charge. Price ceiling is the maximum that is set by law, which makes things more affordable for people.
6.2 Notes
Surplus is the situation in which quantity supplied is greater than quantity demanded; it is also known as excess supply.
Shortage is the situation in which quantity demand is greater than quantity supplied.
Excess demand is also known as shortage.
Search costs are the financial and opportunity costs consumers pay when searching for a good or service.
Excess demand will lead firms to raise prices.
Higher prices induce the quantity supplies to rise and the quantity demand to fall until the two values are equal.
Since the market equilibrium occurs at the intersection of a demand curve and a supply curve, a shift of the entire supply curve will change the equilibrium price and quantity.
Equilibrium in a bad market would move the curve downward and to the right.
The supply curve would move to the left because the quantity supplied is lower at all price levels.
When a fad is in its peak the demand can fall quickly as it rose.
Excess demand turns into excess supply when there is a fall in demand.
6.3 Notes
Supply shock is a sudden shortage of a good.
Rationing is a system of allocating scarce goods and services using criteria other than price.
Black market is a market in which goods are sold illegally.
Spillover costs are costs of production that affect people who have no control over how much of a good is produces.
Sweaters sell for different prices depending on style, and type of yarn.
Prices serve a vital role in a free market economy.
Prices help move land, labor, and capital into the hands of producers and finished goods into the hands of buyers.
Buyers and sellers alike look at prices to find information on a good demand and supply.
The law of supply and the law of demand describe how people and firms respond to a change in prices.
A supply shock creates a problem of excess demand because suppliers can no longer meet the needs of consumers.
- Equilibrium is the point at which quantity demanded and quantity supplied are equal.
- Disequilibrium is any price or quantity not at equilibrium, this is when a quantity is Supplied is not equal to quantity demanded is more than the quantity supplied.
- Excess demand is when quantity demanded is more then the quantity supplied.
- Excess supply is when quantity supplied is more than quantity demanded
- Price ceiling a maximum price that can be legally charged for a good or services
- Price floor is a minimum price for a good or service.
- Rent control is a price ceiling placed on rent.
- Minimum wage is a minimum price that an employer can pay a worker for an hour of labor.
- The market would be in equilibrium and people would be able to afford more spots.
- A price ceiling is a maximum price, set by law, that sellers can charge for a good or service.
- The equilibrium price and quantity can be found where quantity supplied equals quantity demanded, or the point where the supply curve crosses the demand curve.
#1-3 pg.1311. Equilibrium is unique because it is the point at which quantity demanded and quantity supplied are equal.
2. A situation that can lead to excess demand is, when quantity demanded is more then the quantity supplied.
3. Price floor is the minimum that the government can in-force to make someone charge. Price ceiling is the maximum that is set by law, which makes things more affordable for people.
6.2 Notes
6.3 Notes
Ch. 6 Review
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